Question
On 1 July 2018, Cole Ltd grants 70 share options to each of its 300 executive managers, conditional upon the employee working Cole for the
On 1 July 2018, Cole Ltd grants 70 share options to each of its 300 executive managers, conditional upon the employee working Cole for the next two years. Using a generally accepted valuation model, the fair value of the share options is estimated at $10 per option at the grant date. Also, it is estimated that 15% of the executive managers will leave Cole Ltd within the next two years, therefore forfeiting their rights to the share options. By 30 June 2019, 20 executive managers had left Cole Ltd and it is still estimated that, overall, 15% of executives will leave over the two-year period. By 30 June 2020, another 40 executives have left before the options vest.
Required Record above events in the general journal of Cole Ltd in accordance with the requirements of AASB 2 Share-based Payments
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started